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14.3.07

No Plans To Ban Granite

14 March 2007 (TODAY)

Indonesian Trade Minister clarifies Jakarta's stand

JAKARTA - The Indonesian government has no plans for a blanket ban onexports of granite, according to the country's Trade Minister.

However, Ms Mari Elka Pangestu added that Jakarta is urging provincialgovernments to stamp out illegal exports of this commodity and export onlygranite that meets Trade Ministry requirements.

"Until now, we are not discussing stopping exports of granite (entirely).What is occurring is that according to government regulations, exportsbesides sand and topsoil, of which granite is one, have to be verified" asmeeting criteria specified by the central government, the Trade Ministertold reporters yesterday.

Ms Pangestu's comments contradicted earlier statements made by Indonesia'sForeign Minister Hassan Wirajuda and Environment Minister RachmatWitoelar, who had said the government was considering a ban on graniteexports.

Ms Pangestu did not specify what the criteria were to determine whethergranite can be legally exported.

The debate over the export of granite comes in the wake of a ban on sandexports imposed by Indonesia on all countries last month. Jakarta's moveaffected the construction industry in Singapore but Singapore has sincefound alternative sources of sand.

The conflicting signals from Jakarta over the granite issue has promptedSingapore's Ministry of Foreign Affairs to seek clarification on theissue.

Yesterday, when asked to comment on the granite issue, Singapore's DefenceMinister Teo Chee Hean said: "There are many different remarks being madeby our counterparts in Indonesia; it's very hard to tell exactly who isspeaking and what that represents, so we have to clarify with them and Ithink that's probably the wisest thing to do right now."

Political analysts say that the latest threat by some officials to bangranite is intended to up the ante and force Singapore to sign anextradition treaty, which would be a feather in the cap for some membersof the Indonesian government. Some politicians have said that this was theagenda behind the sand ban.

The extradition pact has been linked by Indonesian officials to theseother issues despite the fact that Indonesian President Susilo BambangYudhoyono and Singapore's Prime Minister Lee Hsien Loong had agreed inOctober 2005 to negotiate the extradition treaty in tandem with a defenceagreement. - DOW JONES NEWSWIRES and channel newsasia